If you’ve ever opened an IRS letter only to see a list of penalties added to your balance, you know that sinking feeling. Between the failure-to-file and failure-to-pay fees, the numbers can snowball fast — and it’s easy to feel overwhelmed.
At Geaux Tax Resolution, we’ve helped folks all across Mandeville, Lafayette, and beyond get those penalties reduced or even removed. The IRS knows that sometimes life just happens, and if you qualify for penalty abatement, you could save a significant amount of money.
What Is Penalty Abatement?
Penalty abatement is the IRS’s way of saying, “We understand.”
It’s a form of relief that lets taxpayers request removal of penalties if they can show they had a good reason for falling behind — and if they’ve been responsible in the past.
The most common penalties we see include:
- Failure to file: You missed the tax-filing deadline.
- Failure to pay: You filed, but couldn’t pay the full amount on time.
- Failure to deposit: For business owners who fell behind on payroll taxes.
These penalties can reach up to 25 % of your total tax due, not counting interest. That’s why asking for relief can make a big difference.
Three Main Ways to Qualify
There are a few different ways you can qualify for IRS penalty relief, depending on your history and your situation.
1. First-Time Penalty Abatement (FTA)
If this is your first issue with the IRS, you may qualify for First-Time Abatement, a one-time courtesy waiver.
To qualify, you must:
- Have filed all required returns (or an approved extension).
- Have no penalties in the past three years.
- Have paid, or made arrangements to pay, any taxes due.
Think of this as a “clean-slate” option for taxpayers who usually play by the rules.
2. Reasonable Cause Relief
If you don’t qualify for the one-time abatement, you may still be eligible under the reasonable cause rule. The IRS grants this when unexpected circumstances kept you from filing or paying on time — things like:
- Serious illness or death in the family
- Natural disasters (and we know in Louisiana, hurricanes happen)
- Loss of financial records
- Reliance on incorrect professional advice
- Sudden job loss or financial hardship
The key is documentation. We help our clients gather proof to show the IRS that the delay wasn’t due to neglect, but genuine difficulty.
3. Administrative Waivers or Special Circumstances
Sometimes the IRS issues broad penalty waivers, such as after hurricanes or system-wide delays. Our team stays current on IRS policy updates so we can spot opportunities for relief as soon as they’re announced.
How to Request Penalty Relief
There’s no universal form — it depends on the type of penalty. Some requests can be made over the phone; others require a written letter or Form 843 (Claim for Refund and Request for Abatement).
Here’s how we usually approach it:
- We review your IRS account and determine which penalties qualify.
- We prepare a strong, well-documented request with supporting evidence.
- We contact the IRS directly and advocate on your behalf.
Our clients are often surprised at how much difference a well-written, professional request can make.
Why Working with a Professional Helps
The IRS’s idea of “reasonable cause” isn’t always clear, and one small mistake can delay your request for months. That’s why having a trusted local team on your side can make the process faster and less stressful.
At Geaux Tax Resolution, we work with taxpayers throughout Louisiana to analyze penalty notices, prepare solid relief requests, and negotiate directly with the IRS. Whether your tax bill is a few hundred or several thousand dollars, we’ll treat your situation with respect and understanding.
Keeping Future Penalties Away
Once your penalties are removed, let’s keep them from coming back.
Here are a few simple tips:
- File early, even if you can’t pay in full — you’ll avoid the harsher failure-to-file penalty.
- Set up reminders for federal and state due dates.
- Check withholdings or estimates to prevent underpayment.
- Stay in touch with your tax professional before each season rolls around.
A little organization can save a lot of stress (and money).
We’re Here When You’re Ready
If IRS penalties are keeping you up at night, you don’t have to face them alone. Our caring team at Geaux Tax Resolution will walk you through your options and help you get the relief you deserve.
📍 Mandeville Office
1795 W. Causeway Approach, Suite 102
(985) 722-1040
📍 Lafayette Office
3909-L Ambassador Caffery, Suite B
(337) 420-1040
Let’s turn your tax worries into relief — and help you get a fresh start with confidence.
